NEW YORK, July 25, 2019 /PRNewswire/ -- With a higher
New York City mansion tax looming,
buyers and sellers rushed to close deals on expensive homes in the
second quarter of 2019, driving the median recorded sale price in
Manhattan to a record high of
$1,161,496 — an 11% increase from
last year, according to the latest StreetEasy Market
Reportsi.
Also on the rise was the number of homes that entered
contractii during the second quarter of 2019: Pending
sales increased by 6.4% in Manhattan ahead of the July 1 mansion tax hike. Brooklyn and Queens also experienced an uptick in sales, at
6.4% and 15.9%, respectively.
After several months of decline, New
York City home prices began to level out in the second
quarter of 2019iii. The StreetEasy Manhattan Price
Indexiv dropped 3.7% from last year to $1,113,201, but prices in the borough were still
higher than in the first quarter of 2019. Prices in Brooklyn remained stagnant, at $711,410, and the StreetEasy Queens Price Index
rose 1.5% year over year to $516,374,
the slowest rate of growth since 2013.
These signs point to a seemingly strengthening market. But even
with a wave of home sales this spring, and annual increases in the
number of homes entering contract in all three boroughs analyzed, a
large surplus of inventory remains. Brooklyn and Queens saw more homes for sale than ever
during the second quarter: 8,249 in Brooklyn, up 13.0% from last year, and 4,895
in Queens, up 14.5%. Meanwhile,
Manhattan inventory hit its
highest level since 2011, with 13,543 homes on the market.
"Lower mortgage rates, a strong economy and steady job growth
have kept demand for homes in New York
City high, helping give the sales market a much-needed boost
after a year of weakness," says StreetEasy Senior
Economist Grant Long. "The
looming mansion tax also spurred a flurry of sales activity in the
second quarter, as sellers and buyers raced to close ahead of the
July 1 deadline. While this comes as
encouraging news for sellers, it remains to be seen how well this
market will be able to absorb the surplus of homes currently for
sale across price points."
See below for additional sales and rental market trends across
Manhattan, Brooklyn and Queens.
Q2 2019 Key Findings — Manhattan
- Prices dropped, but at a slower rate than last quarter.
The StreetEasy Manhattan Price Index fell to $1,113,201, a 3.7% year-over-year decrease. This
dip in prices was exactly 1 percentage point smaller than last
quarter, when prices dropped 4.7% annually to $1,107,863.
- More homes went into contract. In Manhattan, 3,179 homes went into contract
– a 6.4% jump from last year. The number of homes going into
contract increased in every submarket but Midtownv,
where it fell 1.2%.
- Inventory rose across the borough. All five Manhattan submarkets saw an increase in
inventory, resulting in a 7.1% jump since last year in the number
of homes for sale, to 13,543. The luxury market (the top 20% of
homes by price) experienced a 7.1% decrease in inventory year over
year, the largest drop in two years.
- Homes lingered on the market for two weeks longer.
Median days on market increased by 14 days, to 75 days total. Homes
in Midtown spent 91 days on the market — 20 days longer than last
year, and the longest period of any submarket in the borough.
- Price cuts dropped on the Upper East Side and Upper West
Side. The share of price cuts in Manhattan remained about the same as last
year, increasing 0.1 percentage points to 28.1%. The share of price
cuts dropped only on the Upper East Sidevi and Upper
West Sidevii, where it fell by 1.6 percentage points and
2.2 percentage points, respectively.
Q2 2019 Key Findings — Brooklyn
- Prices were unchanged. The StreetEasy Brooklyn Price
Index remained about the same as last year at $711,410 — a slight increase of 0.3%. Prices rose
the most in South
Brooklynviii, up 3.0% to $723,713.
- More homes went into contract. The number of homes
entering contract in North
Brooklynix, the most expensive submarket in the
borough, jumped 19.3% in the second quarter. Brooklyn-wide, the number of homes entering
contract rose by 6.4%.
- Inventory reached an all-time high. The amount of
for-sale inventory in Brooklyn
rose to a record high of 8,249 homes, up 13.0% since last year. All
five submarkets experienced an increase in inventory, with
South Brooklyn recording the
largest increase, at 16.9%.
- Homes idled on the market for nearly a week longer.
Median days on market rose by six days, to 59 days. Homes lingered
on the market for longer in every submarket except for Northwest Brooklynx, where the
median days on market remained unchanged at 46 days.
- One in four sellers offered price cuts. The share of
price cuts in the borough increased by 4.0 percentage points to
25%, the highest level since 2010.
May 2019 Key Findings —
Queens
- Prices rose at their slowest rate in six years. The
StreetEasy Queens Price Index rose 1.5% to $516,374, the slowest pace of growth in the
borough since the fourth quarter of 2013.
- Pending sales spiked. Of the boroughs analyzed,
Queens saw the largest annual jump
in the number of homes entering contract at 15.9%. Compared to last
year, 179 more homes entered contract, resulting in the highest
number of pending sales on record (1,302).
- There was more inventory on the market than ever before.
Queens saw a 14.5% uptick in
inventory in the second quarter, and its 4,895 homes for sale set a
second-quarter record. Homes sold the fastest in Queens. Median days on market in
Queens increased by four days
since last year, to 58 days. Homes in Northwest Queensxi sold faster than
last year, quickening by 8 days to a median of 48 days.
- More sellers offered price cuts than ever. The share of
homes with a price cut rose 3.3 percentage points to a new borough
record of 20.8%. The share of price cuts fell in one submarket –
Northwest Queens – by 4.9
percentage points, to 22.0%.
The complete StreetEasy Market Reports for Manhattan, Brooklyn and Queens, with additional neighborhood data and
graphics, can be viewed here. Definitions of StreetEasy's metrics
and monthly data from each report can be explored and downloaded
via the StreetEasy Data Dashboard. For a look at the latest
capabilities of the StreetEasy Data Dashboard, which was revamped
in June, visit here.
About StreetEasy
StreetEasy is New York City's
leading local real estate marketplace on mobile and the web,
providing accurate and comprehensive for-sale and for-rent listings
from hundreds of real estate brokerages throughout New York City. StreetEasy adds layers of
proprietary data and useful search tools to help home shoppers and
real estate professionals navigate the complex real estate markets
within the five boroughs of New York
City, as well as Northern New
Jersey.
Launched in 2006, StreetEasy is based in the Flatiron
neighborhood of Manhattan.
StreetEasy is owned and operated by Zillow Group (NASDAQ: Z and
ZG).
StreetEasy is a registered trademark of Zillow, Inc.
i The StreetEasy Market Reports are a monthly
overview of the Manhattan,
Brooklyn and Queens sales and rental markets. Every three
months, a quarterly analysis is published. The report data is
aggregated from public recorded sales and listings data from real
estate brokerages that provide comprehensive coverage of
Manhattan, Brooklyn and Queens, with more than a decade of history for
most metrics. The reports are compiled by the StreetEasy Research
team. For more information, visit
https://streeteasy.com/blog/research/market-reports. StreetEasy
tracks data for all five boroughs within New York City, but currently only produces
reports for Manhattan,
Brooklyn and Queens.
ii StreetEasy defines pending sales as homes that
are in-contract. An offer has been made and accepted, and the
closing is pending.
iii The StreetEasy Market Reports are a monthly
overview of the Manhattan,
Brooklyn and Queens sales and rental markets. Every three
months, a quarterly analysis is published. The report data is
aggregated from public recorded sales and listings data from real
estate brokerages that provide comprehensive coverage of
Manhattan, Brooklyn and Queens, with more than a decade of history for
most metrics. The reports are compiled by the StreetEasy Research
team. For more information, visit
https://streeteasy.com/blog/research/market-reports. StreetEasy
tracks data for all five boroughs within New York City, but currently only produces
reports for Manhattan,
Brooklyn and Queens.
iv The StreetEasy Price Indices track changes in
resale prices of condo, co-op, and townhouse units. Each index uses
a repeat-sales method of comparing the sales prices of the same
properties since January 1995 in
Manhattan and January 2007 in Brooklyn and Queens. Given this methodology, each index
accurately captures the change in home prices by controlling for
the varying composition of homes sold in a given month. Levels of
the StreetEasy Price Indices reflect average values of homes on the
market. Data on the sale of homes is sourced from the New York City
Department of Finance. Full methodology here.
v The Midtown submarket includes Midtown, Central
Park South, Midtown South,
Midtown East and Midtown West.
vi The Upper East Side submarket includes
Lenox Hill, Yorkville, Carnegie Hill and Upper Carnegie
Hill.
vii The Upper West Side submarket includes
Lincoln Square, Manhattan Valley and
Morningside Heights.
viii The South Brooklyn submarket includes Sunset
Park, Bay Ridge, Dyker Heights, Bensonhurst, Bath Beach, Gravesend,
Borough Park, Ocean Parkway, Kensington, Coney Island, Brighton
Beach, Ditmas Park, Seagate, Flatbush, Midwood, Sheepshead Bay,
Manhattan Beach, East Flatbush, Canarsie, Flatlands, Marine Park, Mill Basin, Bergen Beach, Old Mill
Basin, Greenwood and Gerritsen Beach.
ix The North Brooklyn submarket includes Greenpoint
and Williamsburg.
x The Northwest Brooklyn submarket includes
Downtown Brooklyn, Fort Greene,
Brooklyn Heights, Boerum Hill, DUMBO, Red
Hook, Gowanus, Carroll Gardens, Cobble Hill, Columbia St.
Waterfront District and Clinton
Hill.
xi The Northwest Queens submarket includes
Astoria, Long Island City, Sunnyside and Ditmars-Steinway.
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SOURCE StreetEasy